At December 31, 2020, the Following Information Was Provided by the Defined

question 104

Multiple Choice

At December 31, 2020, the following information was provided by the defined benefit pension plan administrator for Leonardo Corp.: The corporation uses IFRS. What is the net defined benefit liability/asset account that should be shown on Leonardo's December 31, 2020 statement of financial position?

• A) $ 1,200,000 liability
• B) $ 1,200,000 asset
• C) $ 6,200,000 liability
• D) $ 5,000,000 asset

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Definitions:

Equivalent Payment

A payment amount that equates the present value of two or more different payments.

Annum

A term denoting a year or a yearly period, often used in financial contexts to refer to annual amounts or periods.

Simple Interest

Interest calculated only on the principal amount, not on the interest that has been added over time.

Repay

The act of paying back money that was borrowed from a person or institution.